Arcesium Senior Financial Analyst Interview Questions and Answers

Deutsche Bank is a leading global investment bank with a strong reputation and diverse range of services.

• Deutsche Bank has a strong reputation in the financial industry

• It offers a diverse range of services, including investment banking, asset management, and wealth management

• The bank has a global presence, with operations in over 70 countries

• Deutsche Bank has a strong commitment to innovation and technology, which is i...read more

The shortest path between two diagonally opposite corners of a solid (10X10X10) cube is the space diagonal.

• The space diagonal can be calculated using the Pythagorean theorem.

• The formula for the space diagonal is √(a² + b² + c²), where a, b, and c are the lengths of the sides of the cube.

• In this case, a = b = c = 10, so the space diagonal is √(10² + 10² + 10²) = √300 ≈ 17.32 units.

Payoff diagrams show the potential profit or loss of an investment at different prices.

• Payoff diagrams are used to visualize the potential outcomes of an investment strategy.

• The x-axis represents the price of the underlying asset, while the y-axis represents the profit or loss.

• A call option has a positive payoff when the stock price is above the strike price, while a put option has a positive payoff when the stock pric...read more

If the interest rate in the market goes up

• The cost of borrowing increases

• Bond prices decrease

• Stock prices may decrease

• Inflation may decrease

• Currency may appreciate

The value of CDS changes based on market conditions and creditworthiness of the underlying entity.

• CDS value increases when the creditworthiness of the underlying entity deteriorates.

• CDS value decreases when the creditworthiness of the underlying entity improves.

• CDS value is also affected by market conditions such as interest rates and liquidity.

• CDS value can be used as an indicator of market sentiment towards the under...read more

Delta is the measure of an option's price sensitivity to changes in the price of the underlying asset.

• Delta is a Greek letter used to represent the degree of change in an option's price relative to the change in the price of the underlying asset.

• Delta ranges from 0 to 1 for call options and -1 to 0 for put options.

• A delta of 0.5 means that for every $1 increase in the underlying asset's price, the option's price will i...read more

Investment banking is a financial service that helps companies and governments raise capital through issuing and selling securities.

• Investment banking involves providing financial advice, underwriting securities, and facilitating mergers and acquisitions.

• It helps companies and governments raise funds by issuing stocks, bonds, and other securities.

• Investment banks also assist in the buying and selling of financial instr...read more

I chose to work for a bank because of my interest in finance and the opportunity to work with a diverse range of clients.

• I have always been interested in finance and banking

• I wanted to work with a diverse range of clients and industries

• I saw an opportunity to develop my skills in financial analysis and risk management

• I was attracted to the stability and growth potential of the banking industry

• I wanted to be part of a t...read more

A dividend payout by a 50% JV affects the parent company's financial statements through the equity method.

• The parent company will record its share of the JV's dividend income as a decrease in the investment account on the balance sheet.

• The parent company's income statement will reflect its share of the JV's earnings, including the dividend income.

• The parent company's cash flow statement will show an increase in cash fr...read more

EV/EBITDA is a valuation metric used to evaluate a company's financial performance and potential for growth.

• EV/EBITDA compares a company's enterprise value (EV) to its earnings before interest, taxes, depreciation, and amortization (EBITDA).

• It is useful for comparing companies in the same industry or sector.

• A lower EV/EBITDA ratio indicates that a company may be undervalued, while a higher ratio may indicate that a com...read more

A new litigation liability can negatively impact the enterprise value.

• Litigation liability can lead to financial losses for the company

• It can also damage the company's reputation and affect future earnings

• The impact on enterprise value depends on the severity of the liability and the company's ability to manage it

• Investors may also perceive the company as riskier, leading to a decrease in stock price

• Examples include la...read more

Yes, I am following the euro zone crisis closely.

• The crisis began in 2009 with Greece's debt crisis and has since spread to other countries in the euro zone.

• The European Central Bank has implemented various measures to address the crisis, including quantitative easing and low interest rates.

• Brexit has also added to the uncertainty in the euro zone.

• Recent updates include the approval of a €750 billion recovery fund to h...read more

Valued Suzlon using DCF and ratios. Assumed growth rates based on industry trends and company performance.

• Used DCF to estimate the intrinsic value of Suzlon based on future cash flows

• Used P/E ratio and EV/EBITDA ratio to compare Suzlon's valuation with industry peers

• Assumed growth rates based on industry trends and Suzlon's historical performance

• Took into account Suzlon's debt levels and interest expenses in the DCF ca...read more

Indian IT sector has a positive outlook with growth drivers like digital transformation and cloud adoption, but faces challenges like talent shortage and increasing competition.

• Growth drivers include digital transformation, cloud adoption, and increasing demand for automation and AI solutions.

• Challenges include talent shortage, increasing competition from global players, and regulatory changes.

• Stock picks include TCS, ...read more

Credit appraisal of SME units involves assessing their financial health, management capabilities, market position, and repayment capacity.

• Analyze financial statements, including balance sheets, income statements, and cash flow statements

• Evaluate management team and their experience in the industry

• Assess market position and competition

• Review credit history and repayment capacity

• Consider collateral and guarantees

• Use cred...read more

Ratios like gross margin, inventory turnover, and return on assets are used to evaluate a manufacturing unit.

• Gross margin ratio measures the profitability of the manufacturing unit by comparing the revenue and cost of goods sold.

• Inventory turnover ratio measures how efficiently the manufacturing unit is managing its inventory.

• Return on assets ratio measures how effectively the manufacturing unit is using its assets to ...read more

Finance is a dynamic field that offers opportunities to analyze data, make strategic decisions, and impact business outcomes.

• I have a passion for numbers and analyzing financial data

• Finance offers a diverse range of career paths, from investment banking to corporate finance

• I enjoy the challenge of making strategic decisions that impact business outcomes

• Finance is a constantly evolving field that requires continuous lea...read more

I want to do I-Banking because of the challenging and dynamic nature of the work.

• I am passionate about finance and enjoy working with numbers.

• I am excited about the fast-paced and high-pressure environment of investment banking.

• I am interested in the opportunity to work on complex financial transactions and help clients achieve their goals.

• I am motivated by the potential for high earnings and career advancement in the

Deutsche Bank should hire me for the financial analyst profile because of my strong analytical skills, experience in financial modeling, and ability to work well under pressure.

• I have a proven track record of analyzing financial data and making sound investment recommendations

• I am proficient in financial modeling and have experience using various financial software

• I am able to work well under pressure and meet tight de...read more

Skills required for a career in I-Banking

• Strong analytical and quantitative skills

• Excellent communication and interpersonal skills

• Ability to work under pressure and meet deadlines

• In-depth knowledge of financial markets and products

• Proficiency in financial modeling and valuation techniques

• Attention to detail and accuracy

• Ability to work in a team environment

• Strong work ethic and commitment to excellence